More Questions on Indian Economy
- Q. Our financial system has provided for the transfer of resources from the centre to the states; the important means of resource transfers are
A)grant-in-aids
B)tax sharing
C)loans
D)All the above
Answer: All the above
- Q. Deficit financing means that the government borrows money from the
A)local bodies
B)big businessmen
C)RBI
D)IMF
Answer: RBI
- Q. If the RBI adopted an expansionist open market operations policy, this means that it will
A)sell securities in the open market
B)offer commercial banks more credit in the open market
C)buy securities from non-government holders
D)openly announce to the market that it intends to expand credit
Answer: offer commercial banks more credit in the open market
- Q. The currency convertibility concept in its original form originated in
A)Bretton Woods Agreement
B)Wells Agreement
C)Taylors Agreement
D)None of the above
Answer: Bretton Woods Agreement
- Q. If an economy is equilibrium at the point where plans to save and to invest are equal, then government expenditure must be
A)equal to government income
B)zero
C)larger than government income
D)negative
Answer: equal to government income
- Q. The first national commission on labours was constituted on:
A)December 24, 1967
B)December 24, 1966.
C)November 24, 1966
D)November 24, 1967
Answer: December 24, 1966.
- Q. Inflation is measured in India on the basis of which ‘Index’?
A)Consumer Price Index for urban workers
B)Consumer Price Index for agricultural workers
C)Wholesale Price Index
D)National income deflation
Answer: Wholesale Price Index
- Q. In which of the following sequences the change in quantity of money leads to change in price level in the Keynesian models?
A)Change in quantity of money - change in employment and output - change in investment - change in the rate of interest - change in price level
B)Change in quantity of money - change in investment - change in employment and output - change in rate of interest - change in price level
C)Change in quantity of money - change in investment - change in rate of interest - change in employment and output - change in price level
D)Change in quantity of money - change in rate of interest - change in investment - change in employment and output - change in price level
Answer: Change in quantity of money - change in rate of interest - change in investment - change in employment and output - change in price level
- Q. Reserve Bank of India was nationalized in the year
A)1945
B)1949
C)1935
D)1969
Answer: 1949
- Q. The Money Order system in India was introduced in the year :
A)1880
B)1999
C)1882
D)1904
Answer: 1880
- Q. When personal direct taxes are subtracted from personal income the obtained value is called:
A)National Income
B)Gross National Product (GNP)
C)Gross Domestic Product (GDP)
D)Personal Income
Answer: Gross National Product (GNP)
- Q. The first wholly Indian Bank was set up in
A)1894
B)1896
C)1794
D)1902
Answer: 1894
- Q. Fiscal deficit in the Union Budget means
A)net increase in Union Governments borrowings from the Reserve Bank of India
B)the sum of budgetary deficit and net increase in internal and external borrowings
C)the difference between current expenditure and current revenue
D)the sum of monetized deficit and budgetary deficit
Answer: the sum of budgetary deficit and net increase in internal and external borrowings
- Q. Open market operation is a part of:
A)Debit Policy
B)Credit Policy
C)Deposit Policy
D)None of these
Answer: Credit Policy
- Q. The first Apparel Park in India has been established in:
A)Tirupur (Tamil Nadu)
B)Punalur (Kerala)
C)Both A and B
D)None of the above
Answer: Tirupur (Tamil Nadu)
- Q. The Board of Industrial and Financial Reconstruction (BIFR) came into existence in
A)1986
B)1987
C)1984
D)1989
Answer: 1987
- Q. SEBI which was established in April 1988 stands for:
A)Securities and Exchange Board of India
B)Share and Exchange Board of India
C)Securities and Exchange Bureau of India
D)Security and Economic Board of India
Answer: Securities and Exchange Board of India
- Q. Ten rupee notes contain the signature of:
A)Chairman, SBI
B)Finance Secretary, GOI
C)Governor, RBI
D)Finance Minister , GOI
Answer: Governor, RBI
- Q. If all the banks in an economy are nationalized and converted into a monopoly bank, the total deposits
A)will increase
B)will decrease
C)will neither increase nor decrease
D)None of the above
Answer: will neither increase nor decrease
- Q. In coal production, India ranks in the world:
A)First
B)Second
C)Third
D)Fourth
Answer: Second
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